Since the start of the financial crisis, a comprehensive reform of the financial services sector has been undertaken. Now, in order to ensure that new banking rules for example are not pushing certain banking activities towards less highly regulated sectors, the Commission had today adopted a roadmap to tackle the risks posed by the shadow banking sector. The communication summarises the work undertaken so far and sets out possible further actions in this important area. The first of those proposals – new rules for money market funds (MMFs) – is also presented today. Because of the interconnectedness of MMFs with the banking sector and with corporate and governance finance, their operation has been at the core of international work on shadow banking. Today's communication on shadow banking is in line with the Financial Stability Board's recommendations which will be endorsed by G20 leaders meeting in St. Petersburg on 5-6 September.

GDP rose by 0.3% in the euro area (EA17) and by 0.4% in the EU27 during the second quarter of 2013, compared with the previous quarter, according to second estimates published by Eurostat, the statistical office of the European Union. In the first quarter of 2013, growth rates were -0.2% and -0.1% respectively. Compared with the same quarter of the previous year, seasonally adjusted GDP fell by 0.5% in the euro area and remained stable in the EU27 in the second quarter of 2013, after -1.0% and -0.7% respectively in the previous quarter. During the second quarter of 2013, GDP in the United States grew by 0.6% compared with the previous quarter (after +0.3% in the first quarter of 2013). Compared with the same quarter of the previous year, GDP rose by 1.6% (after +1.3% in the previous quarter).

President Barroso said before leaving for Saint Petersburg: "The global economic situation makes one thing clear: all G20 leaders need to step up their efforts for recovery, for growth and jobs, for open trade and for fairer taxation. There is no room for complacency and much remains to be done by all G20 members to restore economic confidence globally. I will make clear that the EU has delivered on the commitments made in Los Cabos and that we will continue to deploy our comprehensive policy mix, which is starting to yield results."

The European Commission has formally approved today a number of documents linked to the political agreement between the Council and the European Parliament on the next financial period (Multiannual Financial Framework 2014-2020). The documents include the draft inter-institutional agreement between the European Parliament, the Council and the Commission on budgetary matters - which will be signed in conjunction with the adoption of the MFF regulation - as well as six draft declarations (on own resources; best use of public spending; gender issues related to the annual budget; amounts for the Youth Employment, Horizon 2020, Erasmus and COSME; national management declarations and on the review of the MFF). Today's package does not include the draft MFF regulation itself, as its final adoption rests in the sole hands of the Council and the European Parliament. Details of the above mentioned documents can be found on line http://ec.europa.eu/budget/biblio/documents/fin_fwk1420/fin_fwk1420_en.cfm#draftcouncilregulation1

Mergers: Commission clears acquisition of joint control of ATM Business by Banco Popular and Crédit Mutuel

The European Commission has approved under the EU Merger Regulation the acquisition of joint control of ATM Business of Spain, by Crédit Mutuel of France and the current owner, Banco Popular of Spain. Banco Popular and Crédit Mutuel are active in banking and insurance while the ATM Business will provide ATM payment services. The activities of the acquiring companies overlap in retail banking as well as in car and property insurance. The Commission concluded, however, that the proposed acquisition would not raise competition concerns given the parties' low combined market positions. The transaction was examined under the simplified merger review procedure. More information is available on the Commission's competition website, in the public case register under the case number M.6978 .

Mergers: Commission clears acquisition of MSC by Avnet

The European Commission has approved under the EU Merger Regulation the acquisition of MSCInvestoren GmbH by Avnet EMG GmbH, both of Germany. Avnet is a wholly owned subsidiary of Avnet Inc., a US-based wholesale distributor of electronic components, computer products and technology services.MSC is a wholesale distributor of electronic components with support and consultancy services. The Commission concluded that the proposed acquisition would not raise competition concerns because of MSC's limited market presence and because other alternatives for the purchase of electronic components would be available for customers. The transaction was examined under the normal merger review procedure. More information is available on the Commission's competition website, in the public case register under the case number M.6863

Androulla Vassiliou, European Commissioner for Education, Culture, Multilingualism and Youth, will visit Lithuania on 5-10 September to support the Lithuanian EU Presidency’s push to ensure that quality education and opportunities for young people are at the top of the political agenda. During her visit, Commissioner Vassiliou will open the EU Youth Conference with Dalia Grybauskaitė, President of Lithuania, and the 'European Higher Education in the World' Conference with Prime Minister Algirdas Butkevicius. The Commissioner will also meet Dainius Pavalkis, Minister of Education and Science, Algimanta Pabedinskienė, Minister of Social Security and Labour, and members of the Seimas (Parliament).

In July 2013 compared with June 2013, the seasonally adjusted volume of retail trade rose by 0.1% in the euro area (EA17) and by 0.2% in the EU28, according to estimates from Eurostat, the statistical office of the European Union. In June3 retail trade fell by 0.7% and 0.5% respectively. In July 2013, compared with July 2012, the retail sales index dropped by 1.3% in the euro area and by 0.3% in the EU28.

Vice-President Viviane Reding delivered a speech on the European elections 2014: "Just as America’s Constitution starts with the words “we the people”, our own journey towards a fully democratic federal Union must start with the people. If the people are not by our side, us politicians and intellectuals, then our project is bound to fail. The next European Parliament elections are an opportunity to give our European Union a true parliamentary regime, where each citizen sees what their vote does and exercises democratic control over the executive. Only if European citizens realise that they are at the heart of our project, can we get to the next phase: a political federal Union."